No ratio loans were designed mainly for people with outstanding credit who have a hard time proving their income. You will list your employer on the 1003, or loan application, how long you worked there, the employers address and phone number, and your position but you will not list anywhere on the application how much your actual income is. There is a rate increase associated with this loan due to the obvious risk a lender is taking on by not verifying how much money a person makes. The lender will verify your employment though by contacting your employer and verifying your position, how long you have been there and what your probability of continued employment there is. If the lender is unable to verify your employment they may not approve the loan or allow you to close until they can verify the employment.

For a contract person who has moved to a new location might be best suited for No Ratio program. The stated income program might not work for this type of situation because the underwrite might ask and deny the loan if the underwrite decides that it is unreasonable to make the noted income when the borrower's business is based on referral and he/she has just moved to a new location